Bill Text: MN SF1130 | 2013-2014 | 88th Legislature | Introduced
Bill Title: School district facility lease to charter school authorization clarification
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2013-03-07 - Referred to Finance [SF1130 Detail]
Download: Minnesota-2013-SF1130-Introduced.html
1.2relating to education finance; clarifying that a school district may lease a facility
1.3to a charter school;amending Minnesota Statutes 2012, section 124D.10,
1.4subdivision 23a.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 124D.10, subdivision 23a, is amended to
1.7read:
1.8 Subd. 23a. Related party lease costs. (a) A charter school is prohibited from
1.9entering a lease of real property with a related party unless the lessor is a school district, a
1.10nonprofit corporation under chapter 317A or a cooperative under chapter 308A, and the
1.11lease cost is reasonable under section124D.11, subdivision 4 , clause (1).
1.12 (b) For purposes of this section and section124D.11 :
1.13 (1) "related party" means an affiliate or immediate relative of the other party in
1.14question, an affiliate of an immediate relative, or an immediate relative of an affiliate;
1.15 (2) "affiliate" means a person that directly or indirectly, through one or more
1.16intermediaries, controls, is controlled by, or is under common control with another person;
1.17 (3) "immediate family" means an individual whose relationship by blood, marriage,
1.18adoption, or partnering is no more remote than first cousin;
1.19 (4) "person" means an individual or entity of any kind; and
1.20 (5) "control" means the ability to affect the management, operations, or policy
1.21actions or decisions of a person, whether through ownership of voting securities, by
1.22contract, or otherwise.
2.1 (c) A lease of real property to be used for a charter school, not excluded in paragraph
2.2(a), must contain the following statement: "This lease is subject to Minnesota Statutes,
2.3section124D.10, subdivision 23a ."
2.4 (d) If a charter school enters into as lessee a lease with a related party and the
2.5charter school subsequently closes, the commissioner has the right to recover from the
2.6lessor any lease payments in excess of those that are reasonable under section124D.11,
2.7subdivision 4 , clause (1).
2.8EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
2.9and later.
1.3to a charter school;amending Minnesota Statutes 2012, section 124D.10,
1.4subdivision 23a.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 124D.10, subdivision 23a, is amended to
1.7read:
1.8 Subd. 23a. Related party lease costs. (a) A charter school is prohibited from
1.9entering a lease of real property with a related party unless the lessor is a school district, a
1.10nonprofit corporation under chapter 317A or a cooperative under chapter 308A, and the
1.11lease cost is reasonable under section
1.12 (b) For purposes of this section and section
1.13 (1) "related party" means an affiliate or immediate relative of the other party in
1.14question, an affiliate of an immediate relative, or an immediate relative of an affiliate;
1.15 (2) "affiliate" means a person that directly or indirectly, through one or more
1.16intermediaries, controls, is controlled by, or is under common control with another person;
1.17 (3) "immediate family" means an individual whose relationship by blood, marriage,
1.18adoption, or partnering is no more remote than first cousin;
1.19 (4) "person" means an individual or entity of any kind; and
1.20 (5) "control" means the ability to affect the management, operations, or policy
1.21actions or decisions of a person, whether through ownership of voting securities, by
1.22contract, or otherwise.
2.1 (c) A lease of real property to be used for a charter school, not excluded in paragraph
2.2(a), must contain the following statement: "This lease is subject to Minnesota Statutes,
2.3section
2.4 (d) If a charter school enters into as lessee a lease with a related party and the
2.5charter school subsequently closes, the commissioner has the right to recover from the
2.6lessor any lease payments in excess of those that are reasonable under section
2.7subdivision 4
2.8EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
2.9and later.
